Building Economic Resilience to Disasters: Developing a Business Continuity Plan

Transcription

1 Building Economic Resilience to Disasters: Developing a Business Continuity Plan Buffalo Niagara Region February 26, 2014 Gail Moraton, CBCP Business Resiliency Manager

2 Business Resiliency one important piece of the IBHS plan for creating safer, stronger communities 2

3 IBHS Research Center 3

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5 1 in 4 businesses forced to close after a disaster, never reopens. 5

6 If today were Sunday, October 28, 2012 Hurricane Sandy Sunday, August 23, 1992 Hurricane Andrew Saturday, May 21, 2011 EF5 Tornado in Joplin, MO Wednesday, January 8, 2014 WV Chemical Spill Monday, January 27, 2014 Atlanta s Snowpocalypse 6

7 Natural Disasters Wreak Havoc on Small Businesses Majority of small businesses operate from a single location, making them more vulnerable compared to larger companies Between 60, ,000 small businesses were negatively impacted as a result of Hurricane Sandy Median cost of downtime for a small business due to extreme weather is $3,000 per day 1/3 of small business owners have been personally affected by extreme weather 7 Per report by the Small Business Majority and the American Sustainable Business Council

8 Natural Disasters Wreak Havoc on Small Businesses 57% of small businesses have no disaster recovery plan, and of those that do have a plans, 90% spend less than 1 day per month maintaining them Sandy cost 86,000 jobs in November 2012 manufacturing, retailing, leisure & hospitality industries particularly hit Sandy cost the economy more than $50 billion the most expensive disaster globally in Per report by the Small Business Majority and the American Sustainable Business Council

9 What is Business Continuity? 9

10 Benefits & Value of Business Continuity Planning Safeguard human life Save property & resources Reduce time making critical decisions Recover business functions quicker Shorten the recovery window Ensure customer services & confidence Ensure job security Increase employee confidence & morale Retain share of market 10

11 Hazard & Vulnerability Assessment Know Your Risks Frequency The likelihood that the event will occur. Severity The amount of damage the event is capable of causing your business. NATURAL Earthquake Tornado/Wind Hurricanes Floods Volcanic Eruptions Severe Winter Weather Wildfire Drought Sinkholes SECURITY Privacy Viruses Hackers Data Theft Counterfeiters Cybercrime POLITCAL Strikes Riots Civil Disturbances Bomb Threat Biological Threats Nuclear Threat Acts of War ACCIDENTS Human Error Fires/Explosions Water Damage Building Collapse Environmental Contamination MAN MADE Sabotage Product Tampering Scandal Workplace Violence Sexual Harassment Fraud / Theft Arson Terrorist Attack LOSS OF: Key Employee Senior Leader Subject Matter Expert Key Supplier/Vendor Premises Key Equipment TECHNOLOGICAL Software Failure Hardware Failure Power Outage Data Corruption Cooling System Failure Wiring and Cables Mechanical Systems Communications OTHER THREATS Pandemics Gas/Water Shortage Media Crisis Special Events Mismanagement Product Liability 11

12 Know Your Operations People Key Product Technology Critical Activity Activity Premises 12

13 13 Gathering Information

14 Critical Business Functions Develop Workaround Methods 14

15 Know Your Employees 15

16 Know Your Key Customers, Contacts, Suppliers & Vendors 16

17 Have a Communication Plan for Your Employees Call Tree o Landline o Mobile o Text o Call in Number o Employee Emergency Wallet Card Social Media (Facebook, Twitter, LinkedIn, etc.) Company Intranet 3 rd Party Emergency or Mass Notification Systems 17

18 Have a Communication Plan for Customers, Suppliers & Key Contacts Customers Sign on business door Updates on Company website Provide status of pending orders, delivery schedules, alternate arrangements Suppliers & Vendors Arrange alternate delivery methods Creditors Payment arrangements 18

19 Know Your Information Technology & Vital Records 19

20 Know Your Finances 20

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22 Know When to Update Your Plan Have my business risks or hazards changed? Has my business added new departments, products, or services? Have the priority levels of my documented business functions changed? Has my business added or changed any suppliers/vendors, key contacts or key customers? Is the contact information up to date for existing suppliers/vendors, key contacts and key customers? Have I updated information on specialized equipment needed to resume each business function? 22

23 Know When to Update Your Plan Have there been any staffing changes? Does my company telephone call list need to be updated to reflect new staff personal/emergency contact information? Are the right responsibilities assigned to the right staff? Can I put in place any new protection devices, safeguards or procedures to reduce my business risks and hazards? Are work around or secondary methods written and documented in a manner that my employees can understand and act on them? Have I reviewed my insurance coverage with my agent? 23

24 Know When To Test Your Plan 24

25 Test your Plan with Various Types of Exercises Scenario Based Tabletop Exercise Building Evacuation Exercise Notification Exercise Alternate Site Exercise Full Activation Exercise Pandemic Tabletop Exercise Work from Home Plan Exercise 25

26 Know Where To Go For Help 26

27 Additional FREE Resources 27

28 Insurance will Help you AFFORD to Recover Business Income & Extra Expense Contingent Business Interruption Supply Chain Services Interruption/Off Premises Power Interruption by Civil or Military Authority Extra Expense Equipment Breakdown Cyber Risk Key Man 28

29 Common Excuses for NOT Planning We thought it would never happen to us We had more important things to think about We thought we were too small to need a plan We backed up our computers and thought that was enough We didn t know where to go for help We thought we had no risk It takes too much time It takes too much money 29

30 Choosing your Business Continuity Planner 30

31 Paper Plans Still Important How important are paper based BC plans? 55.6% Essential 24.8% Quite Important 19.7% Not Important As backup in case electronic copies are unavailable. Conversely, electronic versions should be available as backup to paper copies. Neither is "better" than the other on their own. No electricity no computers no business. Hence, paper copies of the BC plan as reference documents are very important. Have various copies in all media formats. Paper copies at work, home, trunk of car, including copies in the cloud, company server, etc. Continuity Central Survey August

32 Promote Employee Awareness Business Continuity Facebook page or on Company Intranet Newsletters featuring BC articles Lunch n Learn meetings Posters & Flyers Contests Training Videos Preparedness Campaigns Reminders & Alerts Business Continuity Day 32

33 Promote Personal Preparedness Basic necessities download a copy of the Recommended Personal Emergency Preparedness Supply List (ready.gov) Contact information for family members, neighbors, doctors, dentists, utility providers Copies of important documents (birth certificates, marriage license, insurance policies, medical history, etc.) Create a plan using a free online tool and/or mobile app 33

34 Avoid Business Continuity Pitfalls Closely Guarded Secret Outdated Lack of Buy In A Book of Lists Not Prioritized Untested Based on a Specific Scenario 34

35 Disaster Planning Made Easier DisasterSafety.org/open for business 35

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37 Commercial Maintenance 37

38 IBHS ZIP Code Web based Tool 38

39 Are you ready for tomorrow? Monday, October 29, 2012 Hurricane Sandy Monday, August 24, 1992 Hurricane Andrew Sunday, May 221, 2011 EF5 Tornado in Joplin, MO Thursday, January 9, 2014 WV Chemical Spill Tuesday, January 28, 2014 Atlanta s Snowpocalypse 39

40 Thank you Questions? Contact: Gail Moraton, CBCP Business Resiliency Manager